New Jersey’s Section 2C:21-21: Everything You Need to Know About Insurance Fraud

Insurance fraud is a big deal in New Jersey. The state has some of the strictest laws against it in the whole country. Section 2C:21-21 of New Jersey’s criminal code deals specifically with insurance fraud crimes and penalties. This law covers things like filing fake claims, staging accidents, and giving false info to insurance companies.

As a New Jersey resident, it’s important to understand what this law says so you don’t accidentally break it. Insurance fraud often seems harmless on the surface, but it can lead to serious criminal charges. Let’s break down the key parts of 2C:21-21 so you know what’s allowed and what could land you in legal trouble.

The Main Types of Insurance Fraud

Section 2C:21-21 lays out a bunch of specific insurance fraud offenses. The main ones are:

• Presenting false claims for payment: This means filing an insurance claim for loss or damage that didn’t really happen. For example, reporting your car as stolen when you actually lent it to a friend.
• Presenting multiple claims for the same loss or damage: Trying to get paid twice for the same incident by filing with multiple insurance companies.
• Presenting claims for bogus medical treatments: Billing for medical procedures that never happened. This is a big one in New Jersey!
• Staging car accidents: Purposely causing a collision with another vehicle to file an injury claim. Yep, people actually do this!
• Giving false info on an insurance application: Lying about stuff like your driving record or medical history to get cheaper premiums.
• Recruiting others to file false claims: Getting family, friends, or shady doctors to submit bogus claims on your behalf.

As you can see, the law covers a ton of different insurance scams people try to pull. Some other violations include selling fake insurance policies, falsely reporting cars as stolen, and lying during company investigations.

The Penalties for Breaking This Law

Insurance fraud is categorized as a crime in New Jersey. If convicted, you can face some pretty harsh penalties:

• Up to 10 years in prison
• Fines up to $150,000
• Restitution for claims paid out
• Permanent criminal record

That’s some serious punishment! Insurance fraud often seems minor, but the potential consequences make it not worth the risk. Even small scams can land you behind bars if caught.

The penalties get worse if the fraud involves larger dollar amounts. Anything over $75,000 bumps the crime up to a first-degree offense. That means up to 20 years in prison and fines up to $200,000!

When Fraud Charges Are Filed

Insurance companies have dedicated fraud investigation units. If they suspect a claim is bogus, they’ll launch a full inquiry. Red flags include:

• Suspicious timing of an accident or injury
• History of frequently filed claims
• Inconsistencies in medical records
• Evidence of staged collisions
• Unusually high claim amounts

If fraud is confirmed, the insurer will notify law enforcement. Police will gather evidence like surveillance footage, medical docs, and witness statements.

Prosecutors will then decide whether there’s enough to file criminal charges. A judge or jury determines guilt at trial. With the stiff penalties involved, you’ll want to consult an experienced criminal defense attorney if facing charges.

Possible Defenses Against Fraud Charges

There are a few arguments that may get fraud charges dropped or reduced:

• You made an honest mistake: Maybe you misjudged an injury claim or misunderstood your policy coverage. As long as there’s no intent to mislead, it may not be criminal.
• Lack of evidence: If the prosecution can’t prove you knowingly committed fraud, the charges could get dismissed.
• Addiction issues: If financial pressures from gambling or drug addiction led to the fraud, treatment may be a better option than jail time.
• Mental incompetence: In some cases, mental illness or dementia can make a person unaware their actions are illegal.

Don’t try to handle fraud charges alone. An attorney can evaluate the evidence and build the strongest defense.

How to Avoid Accidental Violations

The best way to steer clear of 2C:21-21 is to follow best practices when filing insurance claims:

• Be truthful on all applications and claims. Don’t exaggerate or lie about details.
• Keep documentation like medical records and repair estimates. Have evidence to justify the claim amount.
• Review your policy so you know exactly what’s covered and the claim procedures.
• Disclose previous claims when applying for new policies. Failing to mention past incidents can be fraud.
• Avoid suspicious situations that might appear illegally staged, even if they aren’t.
• Consult your agent or company if you’re unsure about anything related to a claim.

As long as you’re upfront and transparent, you shouldn’t have to worry about accidentally committing insurance fraud.

The Bottom Line

Insurance fraud is taken very seriously in New Jersey. Section 2C:21-21 lays out a broad range of offenses with stiff criminal penalties. By knowing what constitutes fraud and following claim best practices, residents can avoid running afoul of this law.

If you do get hit with fraud charges, don’t go it alone. Hire an experienced criminal defense lawyer to protect your rights. They can evaluate the prosecution’s case and build an effective defense. With so much on the line, it’s critical to have expert legal guidance on your side.